[CHAPTER 6]
THE STANDARD OF DEFERRED PAYMENTS
References.
Fisher, Irving, Appreciation and interest. A. E. Assn. Pubs., 11: 331-442. 1896.
Fisher, Irving, A remedy for the rising cost of living—standardizing the dollar. A. E. Rev., 3 (no. 1, supp.): 20-28. 1913. Round table discussion of above, 29-51.
Fisher, Irving, Objections to a compensated dollar answered. A. E. Rev., 4: 818-839. 1914.
*Jevons, ch. XXV.
*Johnson, chs. XI, XII, XVII.
Kinley, David, Objections to a monetary standard based on index numbers. A. E. Rev., 3: 1-19. 1913.
*Materials, 787, 788 (extract from Brown, H. G.,), 788, 789 (extract from Clark, W. E., in "How to invest when prices are rising." 1912).
Noyes, A. D., Forty years of American finance. 1909. Chs. I-III.
Patterson, E. M., Objections to a compensated dollar. A. E. Rev., 3: 863-874. 1913.
*[Phillips], chs. VI, VII, XIII.
Taussig, F. W., The plan for a compensated dollar. Q. J. E., 27: 401-416. 1912-1913.
United States Bureau of Labor Statistics, Bul. 173. 1915.
Walker, chs. III, VI, VII.
Questions.
1. In which year between 1890 and the present year would a fixed salary of $1,000 have gone farthest? In which year would its purchasing power have been least? If a sum of $1,000 loaned in 1897 was returned in 1902, what was the difference in its purchasing power on its return and when it was loaned?
2. Will a day's work of a common laborer buy more to-day than it would a half century ago? Why?
3. The Bureau of Labor's index number for 1912 was 133. What was the percentage change in the value of money from the base period to 1912? Give your reasons and your work.